the hAnDbook oF teChnICAl AnAlySISfiGure 19.26 Transposing the Downtrending Gann Fan Lines to a New Peak on the
Weekly Chart of Corn.
Source: MetaTrader 4
In a similar fashion, future support levels can easily be found by locating, in
a counterclockwise direction, prices that correspond to lower prices occurring at
the following angles: −90, −180, −270, −360, and so on.
Refer to Figure 19.27 for an illustration of the Square of Nine. The diagonal
line of numbers is referred to as the ordinal cross, while the vertical/horizontal line
of numbers represents the cardinal cross.
Geometrical approach for Locating potential support and resistance using
Gann’s square of nine Chart To locate potential support using Gann’s Square
of Nine (S.O.N.) chart, follow the steps listed below:
- Locate the price of a historical or significant peak or trough on the S.O.N.
chart. - Draw a line from the center of the chart (i.e., from square number 1) to the
square containing the price of the historical or significant peak and extend it
to the opposite side of the S.O.N. chart. - Draw a perpendicular line to the line just drawn, also extending it to the ex-
tremes at both ends of the chart. - Locate, in both a counterclockwise and clockwise fashion, successive lower
and higher numbers associated with squares that these lines intersect.
These numbers represent the price levels of potential future support and
resistance. For example, assume that the price of a commodity was $105 per